News analysis

American dream
By the middle of 2016, an Airbus aircraft will roll off the production line on American
soil for the first time. Martin Rivers reports on the significance of this from Mobile, AL
JetBlue will receive the first
US-made Airbus
(photo: Airbus)

etBlue Airways is lined up to receive the first

US-made Airbus aircraft, followed later in the
year by American Airlines. Both carriers have
ordered A321s, though Airbus's new $600 million
facility in Mobile, AL which opened amid much
fanfare on 14 September will also produce A319s
and A320s. Its output is due to reach four aircraft per
month by late 2017.
The opening of the new final assembly line and
delivery centre brings Airbus a step closer to its goal of
producing 60 narrowbodies per month up from the
present output of 42. Another facility in Tianjin, China,
already contributes four units to that quota, while the
majority of A320 Family jets start their life in either
Hamburg or Toulouse.
Airbus's new production line also carries benefits
in the form of lower costs and less stringent workers'
rights protection a useful bargaining chip for the
manufacturer as it sizes up with powerful trade unions
back in Europe.

12 / Low Cost & Regional Airline Business

Arguably the biggest advantage for Airbus, though,

is the ability to stamp its aircraft with a proverbial 'Made
in the USA' seal of approval. That endorsement should
resonate among American carriers and travellers,
deepening the company's footprint in the world's most
developed aviation market. Today, Airbus accounts for
just 19% of America's narrowbody fleet, compared with
Boeing's 63%.
By setting up shop on the Gulf Coast, Airbus and its
250 Mobile-based employees are voicing a powerful
message about the manufacturer's aspirations and
identity within the US marketplace.
"Our commercial aircraft production in Mobile
signifies two things: that Airbus has become the first
truly global aircraft manufacturer; and that Airbus is
now also a truly American manufacturer," says Chief
Executive, Fabrice Brgier.
He describes the opening of the facility as an "historic
event for Airbus", explaining how "it enables us to grow
our already significant presence in America the largest

www.lowcostandregional.com / January 2016

News analysis

single-aisle aircraft market in the world and to be

closer to our US customers and key supplier partners. At
the same time, the expanded industrial capacity gives us
more flexibility to increase production across Airbus to
meet global demand."
In addition to JetBlue and American Airlines, the
Mobile facility will be a boon for Airbus operators
such as Delta Air Lines, United Airlines, Virgin America,
Spirit Airlines, Air Canada, FedEx and UPS. More than
1,300 Airbus jets are currently operated by North
American carriers.
Speaking to journalists shortly before the opening of
the assembly line, Barry Eccleston, President of Airbus
Americas, estimated that the region will require 4,700
new narrowbodies over the next twenty years. By
extrapolating Airbus's existing order-book, he claimed
that this translates into demand for "well over 100 [A320
Family] aircraft a year just to feed the US alone. So you
can see very well that, even at four a month, the Mobile
facility is still only providing a small part of that large and
growing North American market."
Airbus says the assembly line could double output
with a relatively minimal capital outlay, noting that its
Honeywell-built power plant is capable of supporting
eight deliveries per month. Nonetheless, Eccleston
stopped short of committing to an imminent ramp-up.
The opening of an additional production line in
Hamburg subsequently announced in October has
already put the company on-track for its target of 60
global narrowbody deliveries per month by 2019.
Sprawled over 53 acres, the Mobile facility consists
of a transhipment hangar; a final assembly line hangar;
a gauging canopy; a paint shop; and a delivery centre.

Major component assemblies destined for

the factory are constructed by Airbus in France,
Germany, Spain and the UK, before converging in
Hamburg and making the 21 day oceanic journey
to the Port of Mobile.
As well as allowing Airbus to compete with Boeing
in its backyard, the new facility promises huge
economic benefits for the industrial city of Mobile. At
full production Airbus will employ around 1,000 people
at the plant, lifting Alabama's gross domestic product
by $409 million annually.
Mobile and Airbus first forged ties a decade ago
during the manufacturer's failed bid to supply aerial
refuelling tankers to the US Air Force. Despite initially
winning the $35 billion contract under a joint-venture
agreement with Northrop Grumman, Airbus lost the
commission in 2011 after Boeing mounted a successful
appeal. The US manufacturer is now due to deliver its
first KC-46 Pegasus tanker in 2017.
"When we lost the tanker deal, we found we had
made a great friend in Mobile and we were not giving
that up," Airbus Group Chief Executive, Tom Enders,
recalled. "We scratched our heads and thought, 'If not
military, maybe civil'."
The Toulouse-based manufacturer, however, is not
alone in seeking to globalise its production line. Just
one week after the opening of the Mobile facility,
Boeing announced its own plans to build a Boeing
737 completion centre in China. The smaller factory
due to be jointly operated with Comac, China's
state-owned manufacturer will install interiors and
paint liveries, delivering narrowbodies to customers in
the Asian powerhouse.

VIPs present at the Airbus

US manufacturing facilitys
inauguration ceremony
(photo: Airbus)

January 2016 / www.lowcostandregional.com

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